Immediately after quasi-reorganization, what amount should Pink report as share premium?a. 3,200,000b. 2,100,000c. 1,200,000d. 1,100,000 The stockholder's equity section of Pink Company's December 31, 2011 balance sheet consisted of thefollowing:Ordinary shares, par value P30 per share, authorized,Issued and outstanding100,000 sharesP3.000.000Share Premium1,200,000Retained earnings (deficit)Total(2,100,000)P2.100,000On January 2, 2012, Pink put into effect a stockholder-approved quasi-reorganization by reducing thepar value of the shares to P10 and eliminating the deficit against the share premium.

Decrease in Ordinary shares value = (Par value per share - par value after quasi-reorganization) x…

The stockholder's equity section of Pink Company's December 31, 2011 balance sheet consisted of the following: Ordinary shares, par value P30 per share, authorized, Issued and outstanding Share Premium 100,000 shares P3.000.000 1,200,000 Retained earnings (deficit) Total (2,100,000) P2.100,000 On January 2, 2012, Pink put into effect a stockholder-approved quasi-reorganization by reducing the par value of the shares to P10 and eliminating the deficit against the share premium.

The stockholder's equity section of Pink Company's December 31, 2011 balance sheet consisted of the following: Ordinary shares, par value P30 per share, authorized, Issued and outstanding Share Premium 100,000 shares P3.000.000 1,200,000 Retained earnings (deficit) Total (2,100,000) P2.100,000 On January 2, 2012, Pink put into effect a stockholder-approved quasi-reorganization by reducing the par value of the shares to P10 and eliminating the deficit against the share premium.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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